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Aviation History
2002
2002 - 1455.PDF
BUSINESS MERGERS Russia orders air defence revamp Major industry players come together to boost competitiveness in global marketplace worth potential $1 billion Russian president Vladimir Putin has ordered the merger of two lead ing Russian air defence specialists, Almaz and Antei, uniting over 40 companies that develop and pro duce air defence systems. The firms have won export ord ers worth $3 billion since 1994, and the merger is intended to improve the international competitiveness of Russian air defence systems and eliminate budgetary overruns on next generation systems. Merging Almaz and Antei with Russia's third major air defence developer Defence Systems has been on the agenda for some time, but initial attempts were stalled by Almaz and Antei concerns over Defence Systems assuming the lead role in the new structure. Their alternative proposal for an Antei/ Almaz merger over three years was approved by Putin late last month. It is still unclear at what stage Defence Systems will be absorbed. Established in 1994, it combines over 20 enterprises producing air defence systems, including missile developer Fakel, and has a total workforce of 15,000. Defence Systems' design department is working on the Pantsir and Feniks short-range air defence systems and S-125 (SA-3 Goa) upgrade, the Pechora-2. Russian state arms exporter Roso- boronexport sees an annual poten tial for Russian air defence systems of $ 1 billion. It also sees a large mar ket for upgrade of the Almaz-devel- oped S-75 (SA-2 Guideline), S-125 and S-200 (SA-5 Gammon), and Antei-designed Krug (SA-4 Ganef), Osa (SA-8 Gecko) and Tor-Mi (SA- 15 Gauntlet) already in service with more than 30 nations. Targeting India and the Middle East, Almaz has developed an alternative S-125 upgrade - the Pechora, with better range and anti-jamming protec tion. A similar upgrade, the Volga- 2A, is being developed for the S-75. Almaz has completed develop ment of the S-300PMU2 Favorit (SA-10 Grumble) with Fakel 48N6E and 48N6E2 missiles instead of the 55V5 missiles used in the S-300P system. The Russian air force plans to upgrade its in-service S-300P- series systems to the Favorit, with first deliveries later this year. The air force says a new missile system is being tested, able to defeat targets LABOUR RELATIONS BRIAN DUNN / MONTREAL Overtime will reverse backlog as Bombardier strike resolved A 19-day strike at Bombardier's three Montreal manufacturing plants ended on 3 May with the 7,500 workers securing a 16% pay hike over four years, a C$1,000 ($630) signing bonus, a two-year reduction in retirement age, and other benefits. Bombardier says it gained from securing a four-year rather than three- year deal, and cutting the 19% pay increase demand. Bombardier says the strike, its first in 37 years, inflicted damage, but declines to discuss details. "We feel we can make up the loss," it says. The strike probably cost the production of six'50-seat CRJ200s, two 70-seat CRJ700s and one Challenger, which can be made up in overtime, says an analyst at BMO Nesbitt Burns. First quarter CRJ deliveries are expected to reach 50 against 82 a year ago, says Merrill Lynch, which expects first quarter aerospace operations revenue of C$1.6 billion versus C$2.6 billion a year ago. RESULTS TOM GILL / LONDON KLM restates plan to unify low-cost operations Dutch flag-carrier KLM has reaf firmed plans to bring its two no- frills operations under a single brand name. It will also seek to rep lace its ageing BAe 146 fleet with new narrowbodies either from Airbus or Boeing. Decisions on new aircraft, and the rebranding of Amsterdam- based Basiq Air and London Stansted-based Buzz under either name, await results of a study of KLM's low-cost operations due for completion in the coming months. The announcement came as the airline posted a doubling of net losses for the year ended 31 March as compared with last year to €156 million ($142 million) and a tre bling of operating losses to €277 million. Operating revenues dived by 6% to €428 million as traffic revenues slid 5% in line with traf fic. In contrast to most other major European carriers, KLM says it has maintained yields while passenger load factors have slipped by just 1% thanks to a 4% reduction in capacity. Cargo traffic fared better, dropping by just 3%. Results for the first three months of the year did, however, point to a recovery in air-freight markets. The passenger business also rebounded in the final quarter as load factors rose 3.5%, and in March business- class traffic levels were "especially encouraging". The airline is partic ularly optimistic about Basiq Air and Buzz, both of which saw sub stantial traffic increases. KLM says "prudent" additions to capacity should help secure an operating profit, although possibly not a net profit, for the next fiscal year. The carrier is finalising details of the first phase of its long-haul fleet renewal programme, under which eight remaining Boeing 747-200 stretched upper deck (SUD)/300 passenger and combi aircraft will be replaced by 2005. This will involve leasing six Boeing 777-200ERs and purchasing four more. Three Boe ing 747-400ER freighters will also be ordered to replace the airline's two 747-200 SUD freighters. The airline will also conclude a sale and lease back of two of its 10 Boeing MD-lls next January for two years. Phase two of the renewal involves Airbus A330-200s and additional 777s, replacing eight MD-1 Is and 12 leased Boeing 767s. www.flightinternational.com FLIGHT INTERNATIONAL 14-20 MAY 2002 17
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